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Agricultural Credit Approch

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Agricultural Credit Approach

 

 The National Bank for Agriculture and Rural Development (NABARD) was carved out in 1982 from the Reserve Bank of India by in an Act of the parliament 1981, and continuous to be unique constitutions for bringing about the integrated rural development. It is an apex development financial institution interested with agricultural credit responsibilities, institutional development and also supervisory activities over Regional Rural Banks and Cooperative credit institution.  It has strength of staff 3000 officers and 1800 other staff with financial and technical specialists, agricultural experts, and highly qualified officers stationed in 400 districts and in all state capitals. It also provides the credit facilities.

Credit Oprarations

Its mandate, NABARD has been has been providing financial assistance by way of reference to Commercial Banks, Co-operative Banks and RRBs for supporting production and investment activities in agriculture/allied activities as also activities under the rural non-farm sector. The agricultural credit in larger volumes and to large number of farmers, to provide resource to bank at relatively cheaper rate compare their own cost of and raising resource to channelize the flow of rural credit.

Type of Agricultural Credit

Short term Credit (up to -18 month)

  • Seasonal Agricultural operations (Rs. 24,000) crore in 2007-10 for insuring timely and commercial credit to farmer as per approved scales of finance for different crops areas.
  • Other agricultural/non-agricultural operations such as input marketing, peciculture village industrial co-operative, forest produce, rural artisans, handloom, wavers etc.

Medium term Credit (up to 3 years) But extended up to 7 years in special circumstances

  • Conservations lone for substantial crop damage due to natural climates.
  • Non-Schemestic loans for productive assets acquisition.

Long term credit (beyond 3 years up to 25 years)

For the financing all rural economic activities leading to capital formation through assets creation.  This induces technological upgradation resulting in increased production productivity and incremental income to farmers and entrepreneurs.     

 

 

 

 

 

 

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Please note that this is the opinion of the author and is Not Certified by ICAR or any of its authorised agents.